Employer of Record South Africa

Frequently Asked Questions

– Let’s cover the FAQs you might have. 

Our FAQ’s

South African labor costs are on average 30%+ less than in Europe and North America.

Employees must be South African citizens or permanent residents of an appropriate age who have a barcoded identification document (ID).  Anyone who is not a citizen or a permanent resident of South Africa needs a South African work visa in order to work in the country.

The proof required is a valid barcoded South African ID or a work visa that is specifically issued for the employment with DNA EOR.

Onboarding takes 2 business days after the client signed the DNA EOR services agreement and paid the deposit.

Yes, we have contract templates for both options.

A fixed term contract means a contract of employment that terminates on:

  • the occurrence of a specified event;
  • the completion of a specified task or project;
  • a fixed date (other than an employee’s normal or agreed retirement age).

Normally monthly

Bi-weekly and weekly for blue collar workers are also acceptable.

Normally on the 25th of a month but employers can also contract to pay on another date (e.g. last working day of the month)

Standard practice in South Africa is three months. It is possible to use a longer probation period provided the length is deemed reasonable given the circumstances of the job.

Employees are paid for an average of 40 hours per week from Monday to Friday.   Working hours are from 08h00 to 17h00 with an hour unpaid meal break per day, i.e. 8 hours paid plus 1 hour unpaid.

Only employees that earn less than the BCEA earnings threshold (currently R21 197.63 per month) are entitled to overtime payment.

Overtime must be at 1.5 times the normal wage rate except for Sunday work and work on public holidays, which must be remunerated at twice the normal wage rate.

The minimum wage rate is R27.58 per hour (approximately R 4780.53 per month)

Unemployment Insurance Fund (UIF): 1% of Gross Salary up to a ceiling of R17 712 per month, i.e. the maximum UIF contribution is R 177.12 per month.

No it is not mandatory for an employer to provide health insurance.

Leave balances and applications are tracked on the DNA EOR on-line platform.

Have Another Question?

Contact Our Team!